US Inflation Hits 2.7% in June, Fed Eyes Impact

U.S. inflation rose 2.7% year-over-year in June, up from 2.4% in May, with monthly consumer prices increasing by 0.3%. Core inflation, which excludes food and energy, climbed to 2.9%, indicating ongoing price pressures and highlighting the effects of new tariffs and higher gas prices. While headline inflation slightly exceeded expectations, core monthly inflation was milder than forecasted. The Federal Reserve is expected to delay interest rate cuts, as policymakers seek more evidence of progress toward the 2% inflation target. Financial markets reacted cautiously, anticipating that sustained high inflation and interest rates could impact investor sentiment and company earnings. The next Fed meeting will assess these inflation trends, labor market conditions, and the ongoing impact of tariffs.